Trustees:
A corrected version of the original version Bookmarked elsewhere on this page. (Permission has been requested of the author.)
Copies were distributed in class.
Note that this has been updated 11/15/18 to include additional activities during this period.
See the overall Production & cost prep document for when to do these exercises.
This is exercise #2. For #1, see "09-10 Polynomial production ... functions.xlsx".
Unlike other exercises, this was not handed out in print. Work through it for M 11/19 and W 11/21.
These data are from both our experiment and one from a past class that involved better controls of things other than labor input.
This may be assigned to be worked in preparation for review on W 11/21, depending on our progress.
Like the exercise to follow, since this example has a simple (linear) MC function, algebraic (as well as graphical and numerical) solution is possible.
After we work through the similar example in class, work through this in preparation for brief review on W, 12/5 and F, 12/7 in parts as announced in class, depending on our progress.
This is updated shortly after presentation in class to match the sign (+, not -) of the MRS, etc. to match Frank.
The link to numerical simulation of the Slutsky and Hicks decompositions in one of the last slides is now updated to a working version (fixing the problem with Java).
We got through the sources of monopoly in this in Fall 2018. For the rest, see "12 Monopoly - brief" slides.
This will be available until M 10/1 at class time. No answer key will be provided. This is an example of the format of the exam, not your primary opportunity for practicing with its content.
17:26 TED talk.
There is a typo in the last example equation for the Power Rule. The last x should be raised to the 8th power.
Optional, using calculus for marginal analysis.
In the Cobb-Douglas utility function presented in class, the exponents on the quantities of goods (b and 1-b) are assumed to be between 0 and 1 and sum to 1. b represents the relative taste (as a share of 1) of the consumer for the first good, and so appears in each demand function.
These lecture notes are very similar, but use a slightly more general form of the function in which the exponents (a and b) are between 0 and 1 but may not sum to 1. Here a/(a+b) represents the relative taste of the consumer for the first good.
These applets graph the total effects of price and income changes, and the decompositions of price changes into the substitution and income effects, as you slide controls for the prices and income. (Updated to fix the problem created by a change in Java.) The utility function is usually a particular Cobb-Douglass one, with one exception for a Giffen good.
Related to a question on the chapter 5 problems.
Related to the chapter 4 assignment.
Optional: a Google map of Bollywood studios like the one linked to the Monopoly lecture slides of Hollyood studios.